Pennsylvania | 000-00121 | 23-1498399 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
23A Serangoon North, Avenue 5, #01-01 K&S Corporate Headquarters, Singapore | 554369 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press Release dated November 15, 2016. |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: November 15, 2016 | By: | /s/ Jonathan H. Chou | |
Name: | Jonathan H. Chou | ||
Title: | Executive Vice President and Chief Financial Officer | ||
Exhibit No. | Description |
99.1 | Press Release dated November 15, 2016 |
Kulicke & Soffa Pte Ltd 23A Serangoon North Avenue 5 #01-01 K&S Corporate Headquarters Singapore 554369 | |
+65-6880-9600 main +65-6880-9580 fax www.kns.com Co. Regn. No. 199902120H |
Quarterly Results | |||
Fiscal Q4 2016 | Change vs. Fiscal Q4 2015 | Change vs. Fiscal Q3 2016 | |
Net Revenue | $145.8 million | up 22.3% | down 32.6% |
Gross Profit | $66.6 million | up 14.4% | down 33.4% |
Gross Margin | 45.7% | down 320 bps | down 50 bps |
Income from Operations | $3.9 million | up 143.8% | down 89.9% |
Operating Margin | 2.7% | up 130 bps | down 1510 bps |
Net Income | $10.3 million | up 5.1% | down 67.5% |
Net Margin | 7.1% | down 110 bps | down 760 bps |
EPS – Diluted | $0.15 | up 15.4% | down 66.7% |
• | Ball bonder equipment net revenue decreased 35.8% over the June quarter. |
• | Wedge bonder equipment net revenue decreased 21.8% over the June quarter. |
• | Advanced packaging mass reflow equipment net revenue decreased by 42.0% over the June quarter. |
• | Net revenue of $627.2 million. |
• | Gross margin of 45.7%. |
• | Net income was $47.1 million or $0.67 per diluted share. |
• | Cash, cash equivalents and investments were $547.9 million as at October 1, 2016. |
• | 7.9 million shares had been repurchased since the stock repurchase program's August 2014 initiation, equivalent to 10.1% of weighted average shares outstanding at the program's inception. |
Kulicke & Soffa Industries, Inc. | |
Joseph Elgindy | |
Investor Relations & Strategic Initiatives | |
P: +1-215-784-7500 | |
P: +31-40-272-3016 | |
F: +1-215-784-6180 | |
investor@kns.com |
Three months ended | Twelve months ended | |||||||||||||||
October 1, 2016 | October 3, 2015 | October 1, 2016 | October 3, 2015 | |||||||||||||
Net revenue | 145,844 | 119,172 | 627,192 | 536,471 | ||||||||||||
Cost of sales | 79,223 | 60,955 | 340,463 | 277,379 | ||||||||||||
Gross profit | 66,621 | 58,217 | 286,729 | 259,092 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 29,778 | 29,944 | 124,706 | 120,084 | ||||||||||||
Research and development | 22,781 | 21,900 | 92,374 | 90,033 | ||||||||||||
Amortization of intangible assets | 1,665 | 2,851 | 6,661 | 9,883 | ||||||||||||
Restructuring | 8,484 | 1,874 | 10,449 | 1,841 | ||||||||||||
Total operating expenses | 62,708 | 56,569 | 234,190 | 221,841 | ||||||||||||
Income from operations | 3,913 | 1,648 | 52,539 | 37,251 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 1,023 | 453 | 3,318 | 1,637 | ||||||||||||
Interest expense | (268 | ) | (273 | ) | (1,107 | ) | (1,183 | ) | ||||||||
Income from operations before income taxes | 4,668 | 1,828 | 54,750 | 37,705 | ||||||||||||
Income taxes (benefit)/ expense | (5,661 | ) | (7,999 | ) | 7,638 | (12,934 | ) | |||||||||
Net income | $ | 10,329 | $ | 9,827 | $ | 47,112 | $ | 50,639 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.15 | $ | 0.14 | $ | 0.67 | $ | 0.67 | ||||||||
Diluted | $ | 0.15 | $ | 0.13 | $ | 0.67 | $ | 0.67 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 70,404 | 72,731 | 70,477 | 75,414 | ||||||||||||
Diluted | 71,017 | 72,883 | 70,841 | 75,659 |
Three months ended | Twelve months ended | |||||||||||||||
Supplemental financial data: | October 1, 2016 | October 3, 2015 | October 1, 2016 | October 3, 2015 | ||||||||||||
Depreciation and amortization | $ | 4,009 | $ | 4,994 | $ | 16,230 | $ | 18,972 | ||||||||
Capital expenditures | 1,905 | 3,810 | 6,301 | 9,519 | ||||||||||||
Equity-based compensation expense: | ||||||||||||||||
Cost of sales | 98 | 89 | 421 | 393 | ||||||||||||
Selling, general and administrative | 1,223 | 2,738 | 3,244 | 9,127 | ||||||||||||
Research and development | 473 | 626 | 2,065 | 2,469 | ||||||||||||
Total equity-based compensation expense | $ | 1,794 | $ | 3,453 | $ | 5,730 | $ | 11,989 |
As of | ||||||
October 1, 2016 | October 3, 2015 | |||||
Backlog of orders1 | 87,200 | 52,500 | ||||
Number of employees | 2,389 | 2,373 |
1. | Represents customer purchase commitments. While the Company believes these orders will proceed, they are generally cancellable by customers without penalty. |
As of | ||||||||
October 1, 2016 | October 3, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 547,907 | $ | 498,614 | ||||
Accounts and notes receivable, net of allowance for doubtful accounts of $506 and $143 respectively | 130,455 | 108,596 | ||||||
Inventories, net | 87,295 | 79,096 | ||||||
Prepaid expenses and other current assets | 15,285 | 16,937 | ||||||
Deferred income taxes | — | 4,126 | ||||||
TOTAL CURRENT ASSETS | 780,942 | 707,369 | ||||||
Property, plant and equipment, net | 50,342 | 53,234 | ||||||
Goodwill | 81,272 | 81,272 | ||||||
Intangible assets | 50,810 | 57,471 | ||||||
Other assets | 19,078 | 5,120 | ||||||
TOTAL ASSETS | $ | 982,444 | $ | 904,466 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 41,813 | $ | 25,521 | ||||
Accrued expenses and other current liabilities | 63,954 | 45,971 | ||||||
Income taxes payable | 12,830 | 2,442 | ||||||
TOTAL CURRENT LIABILITIES | 118,597 | 73,934 | ||||||
Financing obligation | 16,701 | 16,483 | ||||||
Deferred income taxes | 27,697 | 33,958 | ||||||
Other liabilities | 12,931 | 10,842 | ||||||
TOTAL LIABILITIES | 175,926 | 135,217 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common stock, no par value | 498,676 | 492,339 | ||||||
Treasury stock, at cost | (139,407 | ) | (124,856 | ) | ||||
Retained earnings | 449,975 | 402,863 | ||||||
Accumulated other comprehensive loss | (2,726 | ) | (1,097 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | $ | 806,518 | $ | 769,249 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 982,444 | $ | 904,466 |
Three months ended | Twelve months ended | |||||||||||||||
October 1, 2016 | October 3, 2015 | October 1, 2016 | October 3, 2015 | |||||||||||||
Net cash provided by operating activities | 33,949 | 39,529 | 68,407 | 87,875 | ||||||||||||
Net cash used in investing activities, continuing operations | (1,526 | ) | (3,190 | ) | (5,165 | ) | (94,109 | ) | ||||||||
Net cash used in financing activities, continuing operations | (291 | ) | (14,622 | ) | (14,486 | ) | (84,459 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (353 | ) | 972 | 537 | 1,326 | |||||||||||
Changes in cash and cash equivalents | 31,779 | 22,689 | 49,293 | (89,367 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 516,128 | 475,925 | 498,614 | 587,981 | ||||||||||||
Cash and cash equivalents, end of period | $ | 547,907 | $ | 498,614 | $ | 547,907 | $ | 498,614 |